Question
Consider a bank whose assets, liabilities and shareholders' equity as of December 31, 2019 were as follows: Total loans (denoted by L) were 85% of
Consider a bank whose assets, liabilities and shareholders' equity as of December 31, 2019 were as follows:
Total loans (denoted by L) were 85% of total assets (denoted by TA), liquid assets were 5% of L, bonds and stocks were 10.65% of L, bank's real assets were 1.997% of L, total deposits (denoted by D) were $76 billion, other liabilities were 2 times of shareholders' equity (denoted by E) and E was 8% of TA.
Find liquid assets, L, bonds and stocks, real assets other liabilities and E of the bank as of December 31, 2019 and place all the assets, liabilities and E in a balance sheet of the bank.
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